Answer:
Debit Rent expense and credit prepaid rent for $3,250.
Explanation:
When rent is paid in advance, cash is exchanged for another asset known as prepaid expense. This entry is recorded as
Debit Prepaid expense
Credit Cash account
As the rent is used up, the entries required are;
Debit Rent expense
Credit Prepaid expense
Hence as at January 31, rent expense incurred
= 1/12 × $39,000
= $3,250
The cost of goods sold on October 24 is $4830
The perpetual inventory as on October 31 is 70 units of value as $2310
Explanation:
The order of events in the given scenario,
- Oct. 1 - Inventory 200 units at $30
- Oct. 7 - Sold 160 units
- Oct. 7 - Remaining Inventory 40 units at $30
- Oct. 15 - Purchase 180 units at $33
- Oct. 15 - Total Inventory 40 units at $30 + 180 units at $33
- Oct. 15 - Total Inventory 220 units and value is $7140 ($30 * 40 + $33 * 180)
- Oct. 24 - Sold 150 units
- Oct. 24 - Taken 40 units from the purchase of $30 and 110 units from the purchase of $33 by using FIFO logic
- Oct. 24 - Total cost of goods sold is $4830
So, cost of goods sold on October 24 is $4830
- Oct. 24 - Total Inventory 70 units and value is ($7140 - $4830) = $2310
The perpetual inventory value as on October 31 is $2310
Answer:
option a) $10,840
Explanation:
Data provided in the question:
Value of bond = $100,000
Bonds issued = $95,800
Interest = 10%
Time period = 5 years
Now,
yearly amortization of the bond discount = 
or
= 
or
= $840
Cash payment of interest = $100,000 × 10%
= $10,000
Hence,
the amount of bond interest expense to be recognized in December 31, 2007's adjusting entry = $840 + $10,000
= $10,840
Hence,
The correct answer is option a) $10,840
Answer: Demand for money will Increase
Explanation:
As banks are paying interest on checking accounts, these accounts will become more attractive, people will want to take advantage of this and so they will demand more money.
This will enable them to deposit in checking accounts where they can earn the interest the banks are paying.
Answer:
Option (c) is correct.
Explanation:
Given that,
Beginning net fixed assets = $234,100
Ending net fixed assets = $243,600
Assets were sold during the year = $42,500
Depreciation = $62,500
Net capital spending:
= Ending net fixed assets - Beginning net fixed assets + Depreciation
= $243,600 - $234,100 + $62,500
= $72,000
Therefore, the amount of net capital spending is $72,000.
